Economic Development and Social Change in the People's Republic of China

Transcription

1

2 Willy Kraus Economic Development and Social Change in the People's Republic of China Translated by E. M. Holz With 72 Tables and 6 Figures Springer-Verlag New York Heidelberg Berlin

3 Professor Willy Kraus Ruhr-University Bochum Abteilung fur Ostasienwissenschaften Sektion Wirtschaft Ostasiens Postfach D-4630 Bochum 1, F.R.G. Library of Congress Cataloging in Publication Data Kraus, Willy. Economic development and social change in the People's Republic of China. Translation of: Wirtschaftliche Entwicklung und sozialer Wandel in der Volksrepublik China. Bibliography: p. Includes index. 1. China-Economic policy China- Economic conditions China-Social policy. 4. China-Social conditions. I. Title. HC427.9.K AACR2 This English language edition is an up-to-date revision and translation of the German edition, by W. Kraus, Wirtschaftliche Entwicklung und sozialer Wandel in der Volksrepublik China, 1979 by Springer-Verlag/Berlin-HeideIberg-New York by Springer-Verlag New York Inc. Softcover reprint of the hardcover 1st edition 1982 All rights reserved. No part of this book may be translated or reproduced in any form without written permission from Springer-Verlag, 175 Fifth Avenue, New York, New York 10010, U.S.A. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if the former are not especially identified, is not to be taken as a sign that such names, as understood by the Trade Marks and Merchandise Marks Act, may accordingly be used freely by anyone ISBN-13 : DOl: / e-isbn-13:

4 Foreword It is a pleasant task to welcome the appearance of the American edition of Professor Willy Kraus' valuable work on the economic and social development of the People's Republic of China, first published in German in The book has been updated in the light of the events that have occurred since the original publication and incorporates the latest statistical information made available by the Chinese authorities with unaccustomed liberality. The American edition, like its German predecessor, is a monumental achievement of scholarship, attractively presented. In its comprehensiveness, insight, professionalism and wisdom it ranks among the best studies of the subject. It will add to the knowledge of the specialist, and help the interested layman find his way through the complexities of contemporary China's socioeconomic system. Professor Kraus' work is a most timely and welcome addition to a better and more thorough understanding of an absorbing and important subject. June 1982 Jan S. Prybyla Professor of Economics The Pennsylvania State University University Park, Pennsylvania

5 Preface This book deals with China's development policies. It is based on the original German edition (1979), "Wirtschaftliche Entwicklung und sozialer Wandel in der Volksrepublik China," but is not merely a translation of the German original. The rapid changes in Chinese policy within the last two years, together with a sudden deluge of official data on economic and social developments in the People's Republic of China, have called for a basic and comprehensive revision of text and statistics. This, and some additional changes, have made the American edition a completely up-to-date revision of the original. Certain parts have been condensed, others more extensively treated, while the whole has been expanded to cover the most recent events wherever possible. The period of Chinese development policy treated now extends from 1949 up to the end of The goals of this book have not been changed. It is addressed to readers looking for the broadest possible survey of the concepts and goals, plans and measures, successes and failures of the People's Republic of China in its efforts to promote economic and social development. Of course, readers primarily interested in specific individual aspects of development policy, such as economic or domestic policy, health, demography, or education, can concentrate on these. However, it was my intention to investigate the complex of development policy as a whole and its ramifications on individual, essential areas. There are many excellent books devoted to specific problems concerning China's development. These books are not only limited in scope but are generally restricted to certain time periods. This allows the authors to examine the available data very critically and to investigate them in great detail. But I was more interested in examining the global principles of the development policies of the current government as well as those prevailing in the previous revolutionary period. It was clear that such an objective would call for a broader approach, going well beyond the limits of individual subject areas. I see my investigation as a model for similar investigations of trends and developmental policies in Third World countries (of which, of course, the People's Republic is one), helping each individual country find a new and future-oriented outlook within the framework of its traditional heritage by employing traditional values for renewal and revitalization.

6 viii Preface As in the German edition, the Wade-Giles transcription was used for Chinese names and terms. This seems to be the best transcription for readers not primarily engaged in Chinese studies, but I have supplemented it, to facilitate the identification of persons and places, by the official Chinese Pinyin system in the Index. I only deviate from my system in cases of familiar city and provincial names, which appear in their common English form. For the sake of consistency, in a few cases geographical terms and names occurring in quotations were changed to their common English form. The shortened citation has been used throughout. The Notes consist only of the name of the corresponding author, the year in which the work appeared, and the number of the page cited. The full title and other information is to be found in the Bibliography, which is ordered alphabetically by author. In those cases where the author's name does not appear, the full title of the work appears in the citation. Abbreviations have only been used where there was no chance of confusing one work with another. Author's names usually appear in the form and spelling used by the authors themselves, except in the Bibliography, where the family name always comes first. The Appendix contains many data which are very recent and were added only in proof. It was not always possible to make a corresponding change of the data contained in the body of the text. As a result, there may be a few cases where text and Statistical Appendix do not agree. In these cases, the material in the Appendix is the more definitiveeven though it, too, should be used with the proper scientific reservations. This work could not have been written without the support of the Stiftung Volkswagenwerk, which made it possible for me to take a leave of absence of 18 months from my duties at the Ruhr-UniversiHit Bochum. In addition, the Stiftung Volkswagenwerk provided the necessary financial means for personnel and material. I feel deeply indebted to the Stiftung Volkswagenwerk. I also should like to express my thanks to the Ministry for Science and Research of the state of North Rhine-Westphalia for approving the term of leave proposed by the Stiftung Volkswagenwerk. I also received the generous support of the Institute for Development Research and Development Policy at the Ruhr-Universitat Bochum. This aid was both material and personal. I realize that lowe a great debt to my colleages and students for their tireless help in the protracted process of researching this immense field; without their aid this book would neither be so rich in content nor would it have been completed so quickly. In the preparation of the American edition, especially in the collection of the raw data, in the processing of the most recent statistics, and in correcting all this material, Dr. Rainer Epbinder, Dipl.-Sinologe Alexander Kokoreff, M.A., Dr. Bernhard Lageman, Dr. Hans Link, and Dr. Erhard Louven were all exceedingly helpful. Dr. Link edited and "streamlined" the manuscript. Mr. Erich Holz, M.A., translated the revised text carefully and precisely into English. Dr. Louven generously offered to work on a final correction, together with Mrs. Renee Epbinder, Mr. Holz and Dr. Link, even after having moved to Hamburg and taken up his duties there. Finally, Mr. Holz, together with Dr. Link, prepared the last correction of the proofs and the compilation of the Index. They all have my sincerest gratitude. Mrs. Gerda Bahrdt and Mrs. Gerda Scharlachhofer typed all the various versions of the text with unending patience and care. This, too, was of inestimable value. I should also like to thank Springer-Verlag New York Inc. for its understanding and obliging cooperation in agreeing to many of my suggestions and wishes. My wife and my children were exceedingly patient during the creation of this book. To them lowe more thanks than can plainly be expressed for the understanding they showed for my work in these last few years. Bochum, June 1982 W. Kraus

7 Contents Introduction Chapter One Concepts of Development in the Chinese Communist Party Prior to the Founding of the People's Republic of China. Realization in the Reconstruction Phase, I. Basic Concepts A. The Will to National Renewal B. Soviet and Chinese Positions The Role of the Peasantry Views on the Bourgeoisie and National Movements Class-Consciousness and Class Membership "Creative" Application and Further Development of Marxism S i n ~ oconflict v i e of t Interest C. Aims and Goal Projections Standpoint on Foreign Aid Social Policy Internal Politics Affecting Development Economic Policy II. The Situation in 1949 and First Developmental Measures A. Economic and Social Conditions in Structural Backwardness Institutional Development Hindrances War Destruction, Dismantling, and Currency Decline

8 x Contents B. Social Policy Marriage Legislation Intellectuals Educational Policy Health and Social Policy C. Internal Politics Affecting Development Organization of the Political and Economic Administration Cooperation Between the CCP, the PLA, and the Political and Economic Institutions Parties and Mass Organizations Campaigns for Consolidation and Reeducation. D. Economic Policy Sino-Soviet Economic Cooperation Planning and Organization Reduction of Inflationary Pressure III. Results A. Political Consolidation-Social Integration B. Economic Stabilization C. The Soviet Orientation in the Development Process Chapter Two Adoption of the Soviet Developmental Model. The Period of the First Chinese Five-Year Plan, I. Basic Concept and Planning. II. Development Goals.. A. Social Policy Education and Science Health and Social Security. 3. Population Policy.... B. Internal Politics Affecting Development Constitution and Administration National Minorities Intellectuals.... C. Economic Policy.... I. Industry Agriculture.. 3. Trade Transportation III. Development Policy Measures A. Social Policy Educational and Science Policy Health and Social Policy Population Policy.... B. Internal Politics Affecting Development Constitution and Administrative Reorganization Minorities Policy Cooperation with the Intellectuals.... C. Economic Policy

9 Contents xi 1. Economic Cooperation with the Soviet Union Planning and Organization Budgetary Policy Investment Policy. 5. Sectoral Economic Policy IV. Results A. Social Policy Education and Science Health and Social Insurance Population Development B. Internal Politics Affecting Development.. 1. Constitution and Administration 2. National Minorities 3. Intellectuals C. Economic Policy Industry. 2. Agriculture Trade. 4. Transportation D. Causes of Success and Failure E. The Coming Reorientation Chapter Three The Policy of the Three Red Banners. The Second Five-Year Plan, , and the Consolidation Phase, I. Basic Concept... II. Development Goals A. Social Policy Education and Science Health and Social Insurance Population Development... B. Internal Politics Affecting Development. 1. Administration Ideological Alignment C. Economic Policy Industry.. 2. Agriculture.. 3. Trade. 4. Transportation III. Development Policy Measures.. A. Social Policy Education and Social Policy Health and Social Policy. 3. Population Policy B. Internal Politics Affecting Development.. 1. Administrative Reform Political Strife over the Basic Concept.. 3. The Socialist Education Movement

10 xu Contents C. Economic Policy Economic Cooperation with the Soviet Union 2. Planning and Organization Budgetary Policy Investment Policy Sectoral Economic Policy.... IV. Results A. Social Policy Education and Science Health and Social Security Population Development.... B. Internal Politics Affecting Development.... C. Economic Policy Industry Agriculture Trade Transportation.... D. Causes of the Economic and Political Crisis.... E. Alternative Concepts for Further Development Chapter Four The Great Proletarian Cultural Revolution. Development Policy during the Period of the Third Five-Year Plan, I. Guiding Principles and Basic Concept. The Launching of the Cultural Revolution II. Development Goals A. Social Policy Basic Problems Education and Science Health Policy Population Policy B. Internal Politics Affecting Development "Capitalist Authorities" and Mass Mobilization Administrative and Directive Organs Cadres C. Economic Policy Basic Issues Planning and Organization Industry Agriculture Trade Transportation.... III. Development Policy Measures.... A. Social Policy Education and Science Health Policy Population Policy

11 Contents xiii IV. B. Internal Politics Affecting Development Purges The Formation of Revolutionary Committees C. Economic Policy Planning and Organization Budgetary Policy Investment Policy Sectoral Economic Policy.... Results A. Social Policy B. Internal Politics Affecting Development... C. Economic Policy Industry Agriculture Trade Transportation.... D. Impulse and Restraining Factors of Development E. Reorientation of the Development Policy Chapter Five Between Pragmatism and Maoist Visions of the Future. The Fourth Five-Year Plan, I. Basic Concept and Guiding Principles. II. Development Goals.... A. Social Policy Education and Science Health and Social Security. 3. Mass Organizations Population Development... B. Internal Politics Affecting Development... I. Army, Party, and Government The New Constitution.... C. Economic Policy 1. Industry. 2. Agriculture. 3. Trade Transportation III. Development Policy Measures A. Social Policy Education and Science Policy Health and Social Policy Refounding and Revitalization of the Mass Organizations Population Policy B. Internal Politics Affecting Development Power Struggles, Rehabilitations, and New Campaigns The New Constitution

12 xiv Contents C. Economic Policy Planning and Organization.. 2. Budgetary and Investment Policy. 3. Sectoral Economic Policy IV. Results A. Social Policy Education and Science Health and Social Security Mass Organizations Population Development B. Internal Politics Affecting Development Power Shifts and the Reconstruction of the Party Reshuffle of Posts at the Fourth National People's Congress.. C. Economic Policy I. Industry Agriculture Trade Transportation D. The Causes of Success and Failure. E. New Developments on the Horizon Chapter Six The Great Leap into the Industrial Age I. Development Policy in the Mao Tse-tung Era.... A. The Yield of Development Policy of the Epoch Gross National Product and Per Capita Income. 2. Change in Sectoral Structures and Foreign Trade Distribution of Income and Standard of Living Education, Health Service and Birth Control Domestic Stability and International Recognition.... B. Transferability and Specific Conditions of Chinese Development Policy Transferability Natural Prerequisites for Agriculture and Industry Traditional Elements in the Development Process Manpower Potential for Development.... C. The Use of Chinese Development Experience in the Third World Mobilization of the Population as Development Vehicle The Priority of Agricultural Development The Organization of Rural Small-Scale Industry and the Employment of Technology Conforming to Development The Following of Basic Rules for Development..... II. The Traditional Phase Hua/Teng.... A. Mao Tse-tung's Vision and Chou En-Iai's Legacy 1. Contrary Standpoints The Political Turning Point,

13 Contents xv B. Program and Political Practice of the Hua Kuo-feng Administration Stocktaking, Order and Strict Planning Planning and Organization: Management and Profit Achievement, Labor Discipline, and Wage Policy Industry, Agriculture, and Foreign Trade Education, Science, Art, and Literature C. Constitutional Anchoring and "Democratization" D. Interim Statement and Revision of the Modernization Program 293 III. The Rejection of Maoist Development Policies 294 A. Political Stabilization and the Institutionalization of the New Line The Rehabilitation of Mao's Enemies and the Elimination of the "Maoist Residual Faction" Consolidation of Party and State Institutions The Construction of a Socialist System of Law and a Socialist Democracy B. Reform Policy and Consolidation of the Economy Expansion of Decision-Making Powers and Self-Responsibility for Enterprises I 2. The Reform of Factory Regulations and Management The Elimination of Acute Imbalances. 311 C. Cooperation with the West.... I. Industrialization and Westernization Economic Cooperation Options with the West 3. China's Dialogue with the West Statistical Appendix Notes Bibliography.. Abbreviations.... Index of Names Cited.... Subject Index

14 List of Tables and Figures Tables 1.1 Agricultural Production, Livestock, and Industrial Production prior to 1949 and in Industrial Sickness and Disability Insurance for Workers and Their Dependents Chinese-Soviet Balance of Trade, Socialist Transformation in Industry, Trade, and Transportation, Development of the GNP, Industrial, and Agricultural Production, Structural Change in the GNP by Economic Sectors, Industrial Employees. Classification by Sex, Social Insurance, and Right to Free Medical Care Utilization of Soviet Loan Portion, Formation and Volume of Soviet Loans Foreign Trade by Countries, Share of the Central Government and Local Administrations of State Expenditures, State Revenues, State Expenditures, State Capital Investments, Gross Capital Investment, , by Method I... 86

15 xviii List of Tables and Figures Gross Capital Investment, , by Method II National Income (Material Product) and National Product, Investment Levels, Sectoral Distribution of Capital Construction, Distribution of Industrial Investment between Heavy and Light Industry, Sectoral Distribution of State Investments in the Soviet Union, 1928/ , and in the People's Republic of China, Cultivated Area, Sown Area, Ratio of Multiple Crop Area and Pasture A r e ~ Irrigated Cultivation Area, Pupils in Spare-Time Adult Education, Population Development, Average Annual Incomes, Sectoral Composition of the Net Domestic Product, 1952 and 1957 Percentage Distribution of Capital Goods and Consumer Goods Industries of Total Industrial Production, Collectivization in Agriculture, Socialist Transformation of Private Trade, State Revenues, State Expenditures, Investments, Regional Distribution of Pig Iron Capacity, Breakdown of the Gross Productive Value of Industry and Agriculture in 1957 and Foreign Trade in 1959, 1962, and Imports (F.O.B.) from the Soviet Union, Structural Change in the Social Product by Economic Sectors.... Regional Development in Industrial Production, Production in Large- and Small-Scale Plants: Selected Branches State Revenues for 1966, 1969, and State Expenditures for 1966, 1969, and Commodity Composition of Imports, Commodity Composition of Exports, Foreign Trade with Select Countries, Sectoral Distribution of GNP, Development of Agricultural Production, Modern Freight Transportation, 1965 and State Revenues, State Expenditures, Growth in Foreign Trade, Purchase of Complete Plant Installations, China's Foreign Trade with Select Nations, Commodity Composition of Exports, Commodity Composition of Imports,

16 List of Tables and Figures xix 6.1 Sectoral Distribution of the Gross Domestic Product, Select Consumer Goods: Prices and Work Time Necessary for Purchase 270 A.l National Product, Population, and Rate of Investment. A.2 State Budget A.3 Development Aid, Financial and Personnel. A.4 Health Care A.5 Nutrition.... A.6 Education.... A. 7 Agricultural Production and Livestock A.8 Industrial Production. A.9 Foreign Trade. A.I0 Grain Imports and Exports. A.ll Foreign Trade Commodity Structure according to SITC.... A.12 Rail Traffic A.13 Road Traffic. A.14 Civil Aviation. A.15 Shipping Figures 1.1 Central political organs at the end of Central economic organs in the reconstruction phase State organization of the People's Republic of China according to the Constitution of Administrative organization of the People's Republic of China according to the Constitution of The educational system after the Cultural Revolution Plant organization of Party committees and revolutionary committees. 240

17 Economic Development and Social Change in the People's Republic of China